HomeMy WebLinkAboutCC 12 SO CENTRAL PROJ 06-18-90�t.
DATE:
TO:
FROM:
JUNE 11, 1990
r -ENT CALENDAR N0. 12
6/18/90
Inter - Com
WILLIAM A. HUSTON, EXECUTIVE DIRECTOR TCRDA
RONALD A. NAULT, TREASURER TCRDA
SUBJECT: GENERAL FUND LOAN TO THE TUSTIN COMMUNITY REDEVELOPMENT
AGENCY -SOUTH CENTRAL PROJECT AREA
RECOMMENDATION:
Authorize the Mayor/RDA Chairman to sign the proposed Agreement
loaning the South Central Project Area $500,000 from the City's
General fund and authorize the Treasurer to transfer the funds
prior to June 30, 1990.
DISCUSSION:
In order to carry out the program plan for the South Central
Project Area of the Tustin Community Redevelopment Agency, it is
necessary to have the General Fund make a loan to the Project Area.
In accordance with Redevelopment Law as described in the Health and
Safety code, the sole source of income to a Redevelopment Agency
is tax increment. Tax increment is the change in the tax revenue
that results from the increased assessed evaluation of a
Redevelopment Project Area. Tax increment can only be used to
repay debt. The issuance of bonds is the most typical method of
creating debt, but as of this date, the South Central Project Area
has not had the need to issue long term debt to accomplish the
agency's goals. This may change later this fiscal year as plans
for the Civic Center improvements and other projects become
finalized.
The General Fund can support the Agency's needs on a short term
basis with current surplus cash. It is in the best interest of the
City to support the efforts of the Redevelopment Agency and capture
the full tax increment that it is presently eligible to receive.
MJ
Ronald A. Naul
Treasurer, Tustin Community
Redevelopment Agency
Attachment
RAN:1s
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AGREEMENT
THIS AGREEMENT is made and entered into this 18th day of
June, 1990, by and between the CITY OF TUSTIN, a municipal
corporation of the- County of Orange, State of California,
hereinafter referred to as the "City", and the TUSTIN COMMUNITY
REDEVELOPMENT AGENCY, A California Redevelopment Agency,
hereinafter referred to as "Agency".
RECITALS
WHEREAS, the City Council of the City, pursuant to Health
and Safety Code Section 33610, has deemed it necessary to loan the
Agency Five Hundred Thousand Dollars ($500,000) for the
adminsitrative expenses, capital improvements and overhead of the
Agency; and
WHEREAS, the City Council of the City offered said loan
to the Agency; and
WHEREAS, the Agency, pursuant to Health and Safety code
Section 33601, has accepted said offer; and
WHEREAS, the parties intend to further memorialize their
agreement as to said loan and to set forth the terms and conditions
thereof as agreed to at the time of offer and acceptance.
NOW,? THEREFORE, in consideration of the mutual covenants,
agreements and considerations contained herein, City and Agency
hereby agree as follows:
1. Said loan is to be used by the Agency in carrying out
the South Central Area Redevelopment Project and any other lawful
purposes.
2. The sum loaned to the Agency is to be repaid to City
as follows:
a. Simple interest on said sum shall accrue at the rate
of eight percent (8%) per annum from the date of
transfer of said sum until such time as said sum is
repaid to City.
Page 2
Agreement
b. The sum loaned to the Agency, as well as accrued
interest thereon, shall be repaid to City by the
Agency from tax increment revenues received pursuant
to Health and Safety Code Sections 33670 et seq.
c. If no funds become available to the Agency to repay
said sum, the money loaned and acccrued interest
thereon is forgiven and need not be repaid to City.
Executed on this 18th day of June, 1990.
"CITY" CITY OF TUSTIN
BY
Richard B. Edgar, Mayor
"AGENCY'S TUSTIN COMMUNITY REDEVELOPMENT AGENCY
BY
Richard B. Edgar, Chairman
ATTEST:
clary z. wynn, uizy uierx
Mary E. Wynn, Redevelopment Agency Secretary
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